Europe is getting hammered by inflation worries, rate hikes and the potential for a sovereign debt crisis, which is why Italy underperformed today.
- Stoxx 600 -2.7%
- UK FTSE 100 -2.1%
- German DAX -3.1%
- French CAC -2.8%
- Italy MIB -5.0%
- Spain IBEX -3.8%
European stocks had held up much better than US stocks since the March low, in part because of far less tech exposure and lower multiples. But then you get a day like today where Italian stocks cut through support in a 5% fall and it's a reminder of the risks.
Italian 10-year yields are up to 3.84% from 3.41% the day before the ECB.
